15 Oct Premarket Prep GBPNZD 10152020
#premarketprep #tradingforex #forex #FX #daytrading #tradinglifestyle #daytraderlife #GBPNZD
This is my premarket prep for today’s European session for the Forex pair GBPNZD. This prep builds off of my weekly trade plan I made here:
The purpose of a premarket prep is to find setups within my weekly trade plan bias
Weekly Focus Points
- Only trade off M30/M15 for entries. M30, time-based, or look for exits after 2 hours (4 TPOs). Unless the entry is really late.
- SL placement
- Add spread for shorts, subtract for longs
Compared against Weekly Trading Plan
- Price trading track slightly above last week’s body but within range still
Non-conjecture observations of the market
- Price action
- Price retraced the previous day back up from demand at D1-C‑D 1.94736 to D1-C‑S 1.95562 leaving a long buying wick behind and closing as an inside bar at the 50% mark. Closed above W1 QLo.
- H4 phase 2 ran into some congestion around D‑C-S 1.95562 forming a RBR. Price hasn’t arrived at H4 QHi yet
- Yesterday was a near complete retracement of the previous unidirectional day down
- Market Profile
- Yesterday’s value was created below the bracketing range but price pushed back up into the range
- ADR: 1567
- ASR: 1402
- Yesterday’s High 1.96119
- Yesterday’s Low 1.93452
- Currently above VAH, slightly outside range, 0.7xASR
- D1-C‑S 1.95562 at range high
- ADR 0.5 Low at VAH
- ADR 0.5 High at H4 QHi and D1-C‑S 1.96399
- LN open
- Above value, outside range
- Open distance to value
- Moderate to large imbalance. H4 making RBR although messy. Could see a continuation to the move. However, H4 QHi and D1-C‑S 1.96399 might prove reactive and since yesterday and this morning we traded up we might see a mean reversion.
- LN open
- Clarity (1–5, 5 being best)
- Hypo 1 — Mean Reversion (short)
- D1-C‑S 1.96399, QHi
- Preferred: price action reversal. Potentially an extension up slightly later in the session followed by failed auction. Otherwise a reversal within IB plus extension down.
- Hypo 2 — Continuation (long) (risky)
- Price above M30 VWAP, H4 making RBRs, having traded back into previously formed supply, might see a continuation.
- Preferred: Strong IB extension up early in the session. Sustained auction taking out LTF supplies.
- Hypo 3 — Return to Value
- D1-C‑D 1.94736 at VAH and ADR 0.5 low could see a bounce although proximity is a bit far. Perhaps later on in the session.
- Preferred: Hypo 1, TPO structure built and price action reversal.
ZOIs for Possible Shorts
- D1-C‑S 1.96399
- D1-C‑S 1.95562
ZOIs for Possible Long
- D1-C‑D 1.94736
- H4-C‑D 1.93720
- Feeling okay
Focus Points for trading development
- Monthly Goals
- Continue tracking my DRC tracking sheet
- Focus on my own progress and less on others
- Feeling okay with NOT trading
- Have ‘quieter’ weekends
- Weekly Goal
- Min. 3 times hitting the gym
- Trading Rules
- Trade from D and upwards unless a possible momentum trade, value acceptance or otherwise.
- Risk Management
- 3 trades 1% risk, 3rd trade only if first 2 worked out
- Capital Preservation during drawdown allows for 1R profit-taking
- 2 consecutive days of lack of sleep = NO TRADING